Treasury's $11.5M IT Services Contract with Booz Allen Hamilton Faced Limited Competition
Contract Overview
Contract Amount: $11,490,795 ($11.5M)
Contractor: Booz Allen Hamilton Inc.
Awarding Agency: Department of the Treasury
Start Date: 2006-10-01
End Date: 2017-09-11
Contract Duration: 3,998 days
Daily Burn Rate: $2.9K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 103
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: TIPSS 3 CONTRACT - TTS #2124
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006
Plain-Language Summary
Department of the Treasury obligated $11.5 million to BOOZ ALLEN HAMILTON INC. for work described as: TIPSS 3 CONTRACT - TTS #2124 Key points: 1. The contract awarded $11.5 million for Computer Systems Design Services. 2. Booz Allen Hamilton Inc. was the primary contractor. 3. The contract was awarded as a competitive delivery order, but the specific competition details are unclear. 4. The sector is Information Technology, specifically Computer Systems Design. 5. The contract duration was nearly 10 years, indicating a long-term need.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without specific performance metrics or comparison data, assessing the value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
Awarded as a competitive delivery order, the limited competition suggests that only a few vendors were considered or able to bid. This could impact price discovery and potentially lead to higher costs than a fully open competition.
Taxpayer Impact: The impact on taxpayers is uncertain due to the limited competition and the Cost Plus Fixed Fee structure, which may not have driven the most cost-effective solution.
Public Impact
Taxpayers funded IT services for the IRS over a decade. The contract supported critical government functions through computer systems design. The long duration suggests a sustained need for these services within the Treasury. The specific impact of these services on IRS operations is not detailed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition for a significant contract.
- Cost Plus Fixed Fee structure can incentivize higher spending.
- Long contract duration without clear performance benchmarks.
- Lack of transparency on the competitive process.
Positive Signals
- Contract supported essential government IT functions.
- Awarded through a delivery order mechanism, implying a specific need.
- The contractor is a well-established firm in the federal space.
Sector Analysis
This contract falls within the IT sector, specifically Computer Systems Design Services. Federal spending in this area is substantial, with agencies relying on contractors for complex system development and maintenance. Benchmarks for similar services vary widely based on complexity and duration.
Small Business Impact
The data indicates this was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The contract was awarded as a delivery order under a larger contract (TIPSS 3), suggesting some level of pre-existing oversight. However, the limited competition and contract type warrant scrutiny regarding cost control and performance.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Limited competition raises concerns about price fairness.
- Cost Plus Fixed Fee contracts can lead to uncontrolled spending.
- Lack of detailed performance metrics makes value assessment difficult.
- Long contract duration without clear end-of-life planning.
- Unclear small business participation.
Tags
computer-systems-design-services, department-of-the-treasury, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $11.5 million to BOOZ ALLEN HAMILTON INC.. TIPSS 3 CONTRACT - TTS #2124
Who is the contractor on this award?
The obligated recipient is BOOZ ALLEN HAMILTON INC..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $11.5 million.
What is the period of performance?
Start: 2006-10-01. End: 2017-09-11.
What was the specific scope of 'Computer Systems Design Services' under this contract, and how did it align with the IRS's evolving technological needs over its nearly 10-year lifespan?
The scope likely encompassed the design, development, and integration of various computer systems and software solutions for the IRS. Given the long duration, it could have included everything from initial system architecture to ongoing modifications and upgrades. Alignment with evolving needs would depend on the contract's flexibility and the IRS's project management, but without specific deliverables, it's hard to confirm.
How did the 'limited' competition for this delivery order impact the final pricing and overall value achieved for the taxpayer compared to a fully open and competitive process?
Limited competition typically results in fewer bids, potentially reducing the downward pressure on prices. While the delivery order was 'competitive,' the constraints on bidders may have led to higher costs than if a broader range of vendors had been invited. Assessing the true value requires comparing the final price and service quality against market rates for similar services procured through more open means.
What mechanisms were in place to ensure effective oversight and accountability for a Cost Plus Fixed Fee contract of this magnitude and duration, particularly concerning cost containment?
Oversight for such contracts usually involves detailed reporting requirements, regular audits, and defined milestones. For a CPFF contract, the government's contracting officer representatives (CORs) play a crucial role in monitoring expenditures and ensuring work aligns with the contract's objectives. However, the inherent nature of CPFF contracts requires diligent management to prevent cost overruns and ensure efficiency.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 103
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)
Address: 1953 GALLOWS RD STE 600, VIENNA, VA, 22182
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $21,954,840
Exercised Options: $12,350,377
Current Obligation: $11,490,795
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: TIRNO06D00026
IDV Type: IDC
Timeline
Start Date: 2006-10-01
Current End Date: 2017-09-11
Potential End Date: 2017-09-11 00:00:00
Last Modified: 2017-09-11
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